Committee Minutes

MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - 3:45 p.m.

Members present: Hoeppner, Sande.

1. Request from Community Betterment Assn. for letter of support or non-support of simulcast racing at gaming site located at
the Dakota Place, 110 N. 6th Street.
Mel Webster, attorney, representing Community Betterment Assn. of Bismarck, stated he has represented that organization since its inception in 1992, that one of the purposes of that organization is to promote horse racing in North Dakota, and this generates a lot of economic activity for communities and for the State of North Dakota. He stated that horse racing has gotten to be a big activity in North Dakota, and hope to develop a race circuit in North Dakota, to make racing more economically viable in the state. He reported that Comm. Betterment Assn. spends a portion of its money for various organizations. He noted that an application for gaming has been approved at this site, and they are asking for letter of support for simulcast racing at that site; that this is a requirement of the Racing Commission for every simulcast operation in the State of North Dakota and need that letter of support for this simulcast operation and would ask that the committee provide one to the ND Racing Commission. He stated the organization has been approved for simulcast operation in Bismarck and they will be operating in the City of Bismarck.

The committee asked what percentage of funds would stay in any particular community; Mr. Webster stated he was not sure how percentages arrived at but requests received from community which are approved, that a certain percentage must be returned to the community, but this represents over and above that.

Mrs. Sande stated that committee has been told that primary focus of the horse racing being developed, is a county fair circuit throughout the state, and that there is very little likelihood of horse racing being possible at the GF County Fair because we have stockcar racing and track requirements for cars vs. horses are quite different. Mr. Webster stated he was certain that there are people in GF County who would participate in a race circuit as established throughout the state, and would benefit not only communities in which races held but throughout the entire state; and that there might be another site within Grand Forks County where racing would be held. Mr. Webster stated that Community Betterment Assn.'s purpose is not to sponsor races but to encourage the development of racing in North Dakota.

Ted Maragos, representing Dakota Athletic Club, stated Dakota Athletic Club formed for express purpose of raising money for scholarships for the University of ND and assisting the Athletic Department in recruitment. He stated that this organization is a non-profit charitable organization and has raised many thousands
of dollars for the University. He stated that the organization
has expanded its work in raising funds to include gaming, and
MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 2

listed amounts of contributions to the University. He stated that he felt that committee entitled to have its request honored to have a member of the Community Betterment Assn. present to answer some of the questions of committee. He stated that there are sites that have simulcast racing in ND that are dark, one of which is Dakota Athletic Club, and that has arisen because of a dispute with the present provider; that another provider has submitted application to come into ND but that application has been held by the ND Racing Commission, and at this point in time have stated they will not reconsider it, but that may change as efforts are being made to get them to reconsider getting an alternate provider in the State. He asked the committee to consider tabling this matter until there are alternatives for providers.

Mr. Webster stated that Community Betterment Assn. made application to Racing Commission; that there is only one simulcast provider in the State, and if going to operate a simulcast site have to work with that provider; and again would ask for letter of support.

Mrs. Sande stated committee has been told that Comm. Betterment Assn. leaves a percentage of net in the community in which it operates, and asked what that percentage is. Mr. Webster stated he doesn't have that information. Mrs. Sande stated that committee has asked for that information at least three times and have had no response to that.

Nicholas Spaeth, 1334 South River Road, Fargo, stated he was formerly attorney general for the State of North Dakota, and regulated all forms of gambling, was there when horse racing established and drafted administrative rules that are currently in place. He stated that the Legislature rebuffed efforts by communities to mandate that any percentage of charitable proceeds be returned to the community in which the charity is located; that charity should be set up and allowed to operate on a state-wide basis. He stated that at time simulcast racing established in the State, question of how many service providers can you have in small state arose, and it was decided just to have one because market small; that entity would have exclusive license for a year and then everyone allowed to apply, that at beginning of this year an exclusive franchise was issued Racing Services, Inc.; that controversy arose when some charities got in dispute and dropped simulcast racing; that other charities are now coming in to fill that void, and that is why Community Betterment here today. He stated that committee has application before it requesting letter of support or non-support and that he didn't think they could refuse to act on the request. He also stated that the Racing Commission has made it clear that they are not going to consider any other applications. He urged committee to grant letter of support or non-support, unfair not to act under
MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 3

the situation. Mrs. Sande asked if not unfair if City sends letter of non-support that the Racing Commission can ignore that. Mr. Spaeth stated letter of support or non-support only in administrative rules, and Racing Commission would regard seriously if some problem with the organization, but organization has already been given license to operate in Bismarck, and would be interested in knowing what objections committee has to this organization or that someone is going to come in and provide these services.

Mr. Maragos stated that there is nothing in the law that grants exclusivity to one provider.

Jerry Trenbeth, Cavalier, ND, rep. North Dakota Racing Com-mission, stated he has no business interest in the operation of a simulcast site in Grand Forks; that he is a commissioner whose job it is to represent the industry and promote a growing industry in the State. He stated they have had to make deter-minations on some of the issues that have been brought in front of the Commission, but wanted to make himself available to clear up any questions committee may have in regard to some statements made re. what the position of the Racing Commission is in this matter.

Mrs. Sande questioned why Commission has only licensed one service provider and not willing to entertain a second service provider at any time during the year, except at the end of the year. Mr. Trenbeth stated that as current statute and rules have been interpreted by the Racing Commission and counsel, it has been their opinion that in this State it wasn't economically feasible that they have more than a single service provider at one time, that it has been determined that it is a single license given for a calendar year and they have issued that license for this year. He stated that if there are other applicants for service provider, the Commission is certainly going to consider that in the same manner as in the past and act in a manner that's responsible for the racing industry and the people of North Dakota.

Howard Swanson, city attorney, stated that the issue before the committee and council is not on the service provider level; that he has discussed with the current asst. attorney general who is advising the Racing Commission, and he has indicated that under their procedural rules it is unlikely that they will reconsider their prior action. He stated that asst. atty. general has also indicated that any application for the forthcoming year will be received by the Racing Commission within a defined time period. He stated that with respect to the application by Community Betterment, they are looking for a letter of support or non-support, that allows the committee to opportunity to voice the local community's position on which organization will conduct

MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 4

parimutuel betting within its jurisdiction. He stated he has some concern that unless there is a reasonable basis to not take action, that committee should take some form of action. He also noted that under ordinances and rules of procedure, an attorney may appear upon behalf of any applicant. He stated that there is an open question as to whether or not a letter of non-support is binding or not binding on the Racing Commission, and Racing Comm. has taken position that it is not binding, that there are some conflicting rules whether it is or isn't. He also advised committee not to fight battles they don't have to, but need to look at issue before it, that if there is a specific item that committee feels has been insufficiently answered or not available, to continue to date certain.

The committee raised question re. attorney general's October 1994 opinion stating that it is possible for the City to require a charity to leave a percentage (50%) donated to charities within the city. Mr. Swanson stated that does not apply in this case because committee not acting on a gaming permit. He also stated that there are specific opinions that do not allow City to deny an application for gaming, for an otherwise qualified charity, because they are not a local charity.

Hoeppner moved to approve letter of support for the Community Betterment Assn.; the motion died for lack of a second.

Sande moved to send a letter of non-support for the Community Betterment Assn., and seconded by Hoeppner. Motion carried.

Sande moved a motion to ask that a letter be sent to the State Racing Commission encouraging them to permit anyone who wants to come in and be a service provider, that there is no reason to require a monopoly position and would like to encourage them to open this up to multiple providers. Hoeppner seconded the motion. Motion carried.

2. Application by Dacotah Restaurant, Inc. for Class 3 - On &
Off Sale Beer and Wine license at 110 North 3rd Street
Lloyd Sampson, 3608 11th Avenue North, Grand Forks, stated they are requesting a beer and wine license for a restaurant. Moved by Sande and Hoeppner to approve the application contingent upon the requisite passes by police, fire and health departments. Motion carried.

3. Matter of determining method of operation of a detox center.
Don Shields, director of health department, reported that they set up meetings with community agencies and groups, including Center, Inc., Northwest Recovery Center, Northeast Human Services, United Hospital Chemical Dependency Service, council members, addiction counselors, social workers and members of the Public Health Department on this over the last two weeks. MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 5

He stated that a number of recommendations were made and discussed: 1) city council could entertain requests for funding together with operating plan from groups or corporations to operate a detox facility; 2) that specific applicants could be referred to public safety for evaluation with recommendation to finance or urban development for final consideration in terms of financing; and 3) that an advisory board be set up as a part of any operation of a detoxification center, that Board would meet on a quarterly basis and review issues, utilization and needs, and would be made up of members of the community, council, County, Mission, United Hospital, NE Human Services, social services, public health, etc.

Chairman Hoeppner stated that the committee would hold this matter until the next meeting as there is someone else they would like to speak to. Held in committee.

4. Matter of parking on 5th Avenue North.
A report from the traffic engineer stated that no complaints have been registered since this change made approx. a year ago, and recommended to receive and file. Member Sande stated that she has been in contact with Mr. Fish of Street Department and Mr. Litzinger from UND police department, and both stated no problems this winter, that City does snow removal at night and no overnight parking there; that Mr. Litzinger stated little tight when trucks come through for the fraternities, but can be handled. She stated that Mr. Litzinger did have a request for a "no parking here to corner" sign at Cambridge (or Hamline) because people parking all the way to the corner. Moved by Sande and Hoeppner that we install "no parking here to corner" signs where appropriate in consultation with University Police. Motion carried.

5. Matter of traffic control in driveway between Valley Dairy
and B & H Motel.
Clyde Varnson stated they are trying to get alley either vacated or blocked to control traffic coming through there, which is excessive and extremely fast, and problem has existed for years, and would like something done; or to put a fence on his property. He stated that some of this is their property and some is RR property. After some discussion the matter was held until their next meeting, and committee asked Mr. Varnson to come back with petitions, and also that Mr. Thompson, traffic engineer, contact street and sanitation departments for additional information. Held in committee.

6. Request for "slow" sign in alley at 405 4th Avenue North.
Chairman Hoeppner noted that normally what they do in these situations is to put up 15 MPH signs, that "slow" signs don't have any effect. Moved by Sande and Hoeppner to install 15 mph signs in the alley. Motion carried.

MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 6

7. Request for "no parking here to corner" signs on 24th Ave.S.
at S. 18th Street.
Doug Humphrey, 2410 South 18th Street, was present and stated cars parking up to the corners. John Thompson, traffic engineer, recommended approval of the request with installation of "no parking here to corner" signs from 60 ft. out to the South 18th Street T-intersection. Moved by Sande and Hoeppner to follow the traffic engineer's recommendation. Motion carried.

8. Matter of licensing of tobacco retailers.
Doug Carpenter, 1917 South 10th Street, 4th Ward council member, stated that the ordinance before committee it one the Grand Forks Coalition has been talking about for quite some time; this is not intended to make it difficult for retailers to legally sell tobacco products to people over 18 years of age, but to make access for minors more difficult. He stated he believes this creates significant incentive for retailers to insure that they do not sell to minors; that currently Valley City and Jamestown have tobacco licensing ordinances. He reported that this ordinance was circulated among retailers to gather their opinions and input on it. He stated they received considerable input and have made some changes in the proposed ordinance (changed so that people under 18 could sell because of problem this could create at convenience/grocery stores, and heard lot of complaints re. self-servicing merchandising and have narrowed definition to single packs; have structured license fees re. vending machines, liquor establishments, etc.) and structured penalty provisions so that they apply to location and not specific business ownership), etc. He reviewed the proposed ordinance with the committee. He noted that it was more difficult to go after individual purchaser than retailer. He noted that enforcement would be through health and police departments.

The following retailers spoke in opposition to the ordinance, however, they also stated they have training programs for their employees, and would work with committee to try to solve problem, etc.:
1) Curtis Magnuson, 2805 Olson Drive, Hugo's
2) Jim Carlson, 3211 Elmwood Drive, A & H Vending Co.
3) Wade Pearson, RR Grand Forks, Home of Economy
4) Vicky Rilometo, 1025 Campbell Dr., Conoco Station on S.Wash.
5) Craig ---, 3415 20th Ave.S. #406, Mini-Mart
6) Bob Gustafson, 2960 Columbine Court, Chamber of Commerce, stated he is advocate for no smoking, but also represents constituency of 950 businesses, and about 20-30% of membership of Chamber sell cigarettes and other tobacco products. He stated he hoped they can work together to solve this problem without regulating retailers.
7) Kathy Cumming, 1522 5th Ave.NW, EGF, Valdak Corp.
8) Art Wheeler, Bismarck, ND Petroleum Marketers

MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 7

9) Norm Dufault, Valdak Corporation.

10) Thomas Hagness, 1423 11th Ave.S., council member, spoke in opposition to the proposed ordinance, concern re. effect on vending machine companies, retailers, etc., that State Law addresses teen smoking and we don't enforce what we have; and appears to be merely tax. He stated he would like to see more eduction rather than more government intervention.

The following individuals spoke in favor of the ordinance:
1) Kathleen "Tootsie" Gasparini, 711 Reeves Drive, health teacher and health coordinator in School District, who does tobacco and awareness class for students who are cited (by police dept. and local schools); and
2) Debbie Swanson, 3334 Primrose Court, public health nurse and member of Grand Forks Youth Tobacco Coalition, who expressed concern re. use of tobacco and increase in its use by youth. Mrs. Swanson asked committee for serious consideration and hoped that they would recommend to the council, passage of a youth access ordinance.

Chairman Hoeppner closed discussion on this matter, and the committee held this matter until a later meeting (June 12 or 26).

9. Matter of aerial spraying for mosquitos.
Don Shields, director of the health department, reported bids were opened today, bid received from Airborne Custom in the amount of $2.25/acre for approx. 9,000 acres, and this would only be used if there are encephalitis mosquitos and only if could not get to those mosquitos using ground spraying equipment. He noted that bid is only $0.40/acre higher than last year and is within $500.00 of budget if have to use as an emergency. Moved by Hoeppner and Sande to accept the bid of Airborne Custom Spraying in the amount of $2.25/acre for aerial spraying in the event of an emergency. Motion carried.

10. Budget amendments.
a) Health Department - Tobacco Control, $1,000
Mr. Shields reported this amendment is to reflect additional funding of $1,000 in Tobacco Control grant to send two persons to a conference in Bismarck.
b) Health Department - Communicable Disease, $1,994
Mr. Shields stated this is grant money (Families First revenue) they want to use to purchase vehicle currently under lease for utility vehicle.
Moved by Hoeppner and Sande to approve the budget amendments. Motion carried.

11. Applications for gaming permits:
a) ARC, Upper Valley, Inc. (site authorization)
1) 1708 State Mill Road (Bun Lounge)

MINUTES/PUBLIC SAFETY COMMITTEE
May 22, 1995 - Page 8

2) 701 S. 15th Street (Johnny's Lounge)
3) 2105 S. Washington (Red Ray)
b) GF Athletic Club and Boxing, Inc. (site auth.)
1) 1826 S. Washington Street (Rumors)
c) GF Catholic Schools Assn., Inc. (site auth.)
1) 216 Belmont Road (St. Mary's School)
d) Development Homes, Inc. (site auth.)
1) 1607 DeMers Avenue (Diamond Lounge)
2) 1395-C S. Columbia Road (Dagwood's)
3) 10 North 3rd Street (The Edge/Jonesy's)
e) Grand Forks Blue Line (site auth.)
1) 2525 S. Washington Street (Southgate)
2) State Mill Road (McMenamy's)
f) Greater Grand Forks Convention & Visitor's Bureau (site
authorization)
1) 414 Gateway Drive (Charlie Brown's Bar)
g) Listen, inc. (site auth.)
1) 4720 Gateway Drive (Long Haul Saloon)
2) 1730 13th Avenue North (El Roco Lounge, Inc.)
3) 205 North 3rd Street (Hub Bar)
4) 710 1st Avenue North (Town House Motor Inn)
5) 23 S. 3rd Street (Whiskey Point Saloon)
It was noted that all applications had been reviewed and approved by the city attorney. Moved by Hoeppner and Sande to approve the applications. Motion carried. (committee only)

h) Northern Star Cycling Club - raffle 7/1/95
It was noted that this application had been reviewed and approved by the city attorney, with notation "contingent upon adoption of 'public-spirited' resolution". Mr. Swanson stated that this organization meets general qualifications. Moved by Sande and Hoeppner that we adopt a resolution recognizing the Northern Star Cycling Club as a public-spirited organization eligible to conduct games of chance, and that the application be approved. Motion carried.

12. Temporary and overtime statement as of May 18, 1995.
Moved by Sande and Hoeppner to accept the temporary and overtime statement. Motion carried. (committee only)

Mrs. Sande stated she would like to recognize new deputy fire chief, Pete O'Neill (who was rep. fire department at the meeting)

Meeting adjourned at 6:15 p.m.

Alice Fontaine
City Clerk

Dated: 5/24/95.